BUSH ADMINISTRATION ANNOUNCES MORE THAN $8 MILLION TO HELP VERY LOW-INCOME ELDERLY AND PEOPLE WITH DISABILITIES IN ARKANSAS
Bryant, Benton, Paragould, Russellville and McGehee Receive Grants for Elderly/Disabled Housing

FORT WORTH - It will soon be easier for senior citizens and people with disabilities nationwide to find affordable housing, thanks to more than $710 million in housing assistance announced today by Housing and Urban
Development Secretary Alphonso Jackson. In Arkansas, Bryant, Benton, Paragould, Russellville and McGehee
received a total of $8,369,200 to help very low-income elderly and people with disabilities find decent, safe housing that they can afford. A list of grantees and amounts follows.

"Our senior citizens have given us so much, and Americans with disabilities make remarkable contributions to our society every day. Neither group should ever have to worry about being able to afford a decent place to live," said Jackson. "The grants we are announcing today will go a long way toward achieving that goal."

Section 202 Grants ($574.8 million nationally to assist very low-income elderly)

HUD's Section 202 grants program helps expand the supply of affordable housing with supportive services for the elderly. It provides very low-income elderly with options that allow them to live independently but in an environment that provides support activities such as cleaning, cooking, and transportation.

In addition to funding the construction and rehabilitation of projects to create apartments, HUD Section 202 grants will subsidize rents for five years so that residents will pay only 30 percent of their adjusted incomes as rent.

To be eligible for the assistance a household must be classified as "very low-income," which means an income less than 50 percent of the area median. Nationally, based on 50 percent of the national median family income with an applicable adjustment for household size, a one-person household would need to have an income equal to or less
than $20,300 a year.

HUD provides two forms of Section 202 funds to non-profit groups:

• Capital advances. This money covers the cost of developing the housing. It does not need to be
  repaid if the housing is available for occupancy by very low-income seniors for at least 40 years.



• Project rental assistance. This money covers the difference between the resident's contribution
  toward rent and the cost of operating the project.

Section 811 Grants ($135.8 million nationally to assist very low-income people with disabilities)

This housing, most of which will be newly constructed, typically is small apartment buildings, group homes for three
to four people per home, or condominium units. Residents will pay 30 percent of their adjusted income for rent and
the federal government will pay the rest.

The grants are awarded under HUD's Section 811 program, which provides housing for households with one or more very low-income individuals, at least one of whom is at least 18 years old and has a disability, such as a physical or developmental disability or chronic mental illness. The term "person with disabilities" also includes two or more people with disabilities living together, and one or more persons with disabilities living with one or more live-in attendants. The program allows persons with disabilities to live independently in their communities by increasing the supply of rental housing with the availability of supportive services.

To be classified as "very low-income," a household income cannot exceed 50 percent of the area median income. However, most households that receive Section 811 assistance have an income less than 30 percent of the area median. Generally, this means that a one-person household will have an annual income of about $12,180.

HUD provides the Section 811 funds to non-profits in two forms:

• Capital advances. This is money that covers the cost of developing the housing. It does not need to be
  repaid as long as the housing is available for at least 40 years for occupancy by very low-income people
  with disabilities.



• Project rental assistance. This is money that goes to each non-profit group to cover the difference
  between the residents' contributions toward rent and the cost of operating the project.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov.

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Section 202 - Supportive Housing for the Elderly

Project Location: Bryant, AR
Non-Profit Sponsor: Bryant Methodist Services, Inc
Co-Sponsor: Pathfinder, Inc.
Capital Advance: $1,367,700
5-year rental subsidy: $260,500
Number of units: 20
Project Description: The funds will be used to construct (20) one-bedroom units for the very low-income elderly.
The project is in a very stable area and is easily accessible and convenient to shopping and medical facilities. There
is a city park to the south and east of the property. The multi-use OLM building will contain an office, laundry, maintenance facility and provide community space suitable for activities. Several features are being incorporated
into the building design that will enhance the ability of the residents to live independently.

Project Location: Paragould, AR
Non-Profit Sponsor: White River Housing Development Corp.
Capital Advance: $1,299,300
5-year rental subsidy: $247,500
Number of units: 19
Project Description: The funds will be used to construct 19 one-bedroom units for very low-income elderly persons. The project will include a community space, and a library for a Neighborhood Network program providing two computers with high-speed Internet access for the residents. The location is in close proximity to services such as medical and shopping. The facility will enable the elderly to maintain their independence and have the ability to receive the supportive services they might need.

Project Location: Russellville, AR
Non-Profit Sponsor: Friendship Community Care Inc
Capital Advance: $1,299,300
5-year rental subsidy: $234,500
Number of units: 19
Project Description: The funds will be used to construct 18 one-bedroom units of staggered row houses for the
very-low income elderly and (1) one-bedroom manager's unit. There will also be a community room for the office, laundry area, maintenance and common room. The common room will be used by the residents for educational
training, activities, socialization, and the provisions of support services. Transportation will be available.

Section 811 - Supportive Housing for Persons with Disabilities

Project Location: Benton, AR
Non-Profit Sponsor: Birch Tree Communities
Capital Advance: $1,039,900
5-year rental subsidy: $182,500
Number of units: 15
Project Description: The funds will be used to construct 14 one-bedroom units of staggered row houses for very-low income persons with chronic mental illness and (1) one-bedroom manager's unit. The site is in a semi-rural area
across the street from the Arkansas Health Center and is in close proximity to shopping. The Community Building will be centered in the complex and will house the office, laundry, maintenance room and a common area for education, socialization and activities. The complex will give residents access to safe, decent and affordable housing.

Project Location: Bryant, AR
Non-Profit Sponsor: Friendship Community Care Inc
Capital Advance: $889,000
5-year rental subsidy: $156,500
Number of units: 13
Project Description: The funds will be used to construct 12 one-bedroom units of staggered row houses for very
low-income persons with physical disabilities and (1) one-bedroom manager's unit. The property is adjoining a residential area and is in close proximity to services such as medical and shopping. Transportation will be available. The project will have a community area for the office, laundry, maintenance room and a common area for
educational training, activities, socialization and the provisions of supportive services.

Project Location: McGehee, AR
Non-Profit Sponsor: Albert Roland Jr., Inc
Co-Sponsor: Community Directions, Inc.
Capital Advance: $1,138,500
5-year rental subsidy: $254,000
Number of units: 15
Project Description: The funds will be used to construct (7) one-bedroom and (8) two-bedroom cottage style units with (1) two-bedroom manager's unit. The property is in close proximity to shopping, medical, and employment opportunities. Transportation will be available. The community area will house the office, amenity spaces, maintenance, and community room. These buildings will be fully accessible and the design will facilitate access for
the long-term delivery of supportive services and will accommodate the changing needs of the residents.